The Magic of the First 90 Days: Strategies for Serving Newcomers of Any Age - Direct Selling News

There’s a magic window in direct selling—a tricky space between distributor signup and the first glimmers of success. Here, newcomers—green to the concept of owning businesses and working for themselves—vacillate between unbridled excitement and all-out fear.

It’s understandable. Few come to direct selling with the ability to self-motivate or hold themselves accountable when a boss isn’t lurking down the hall. But newcomers do show up with an indelible ability to learn and effervescent enthusiasm. Problem is, magical windows don’t stay open forever, and with newcomers, timing is everything.

Common industry thought gives direct selling companies 90 days before that window slams shut on the potential success and longevity of a new direct seller. In fact, some argue that technology and the speed at which Gen Y and millennials expect results is compressing time for new distributors to make some proverbial “magic” in direct selling.

Regardless how quick that window inches closed, successful direct selling companies must find methods for newcomers to create habits and behaviors that will enable them to scale and sustain their individual businesses for the long run. In so doing, direct selling companies make good on their promise to new distributors: “You are in business for yourself, not by yourself.”

Industry leaders agree that building on newcomer excitement, eliminating fear and self-doubt, accelerating product and opportunity savvy, and offering newcomers a peek at what’s on the other side of the 90-day window are top priorities.

But strategic differences exist when it comes to direct selling companies serving an increasingly diverse generational pool of new direct sellers, who interact in different ways and expect different things from the world around them.

Some companies, like ViSalus, use a broad brush to express their corporate message. “We’ve created a lifestyle brand that is for the young and young at heart. We have one approach and don’t do anything different, whether they are 18 or 80,” says Blake Mallen, Co-Founder and Chief Marketing Officer.

Face Time and Hash Tags

When success is based on someone’s ability to form relationships, connect and communicate with others, like it is in direct selling, isolation is the enemy. “There’s something that people who work remotely miss in terms of human connection and if they aren’t getting that from a traditional business environment, oftentimes it can become an impediment,” says Alexia Vernon, author of 90 Days, 90 Ways.

Social media helps, but still photos and posts can only go so far. Face time is important to newcomers, especially Gen Y, so Vernon suggests virtual connections like Skype video or a 15-minute video check-in or weekly meeting where people can go to a virtual hangout to catch up.

Hash tags help too. Those little number signs on Twitter connect people to the information and topics they value most. Companies often get it wrong with hash tags, Vernon says. It’s not about pushing the company or products, but sending a message of value to the reader.

Rather than bursting through the front door with an obvious sell, take the side door and offer up interesting content that connects newcomers and anyone else who follows the hash tag to your corporate culture. “When people find that the information is valuable, especially the millennials, they are going to click and they are going to look,” Vernon says.

More the Same Than You Think

The answer is coaching. Call it a generational intersection for the direct selling industry, where the needs of baby boomers and Gen-Y’s, and likely whoever is coming next, merge.

Alexia Vernon, author of 90 Days, 90 Ways, belongs to Gen Y and helps companies understand them better. She says it matters little the working culture of a company. Coaching conversations bring people of varying communication and working styles together.

“It’s not about making everybody the same. It’s just about figuring out how our people like to play.”
—Alexia Vernon, author and Gen-Y expert

Messaging that revolves around coaching allows companies to learn more about their people. “When you learn what makes them tick, then you help them take responsibility for their behaviors and performance,” Vernon says.

“By asking questions and getting people to think, everybody plays together better. It’s not about making everybody the same. It’s just about figuring out how our people like to play. So you make adjustments and you play the way other people want to play.”

That advice goes for direct selling companies appealing to diverse generational groups of newcomers and to the newcomers themselves. When people play well together, they get a whole lot more done in the first 90 days and after.

Every Newbie Needs the Same Things

As different as they seem on the surface, the needs of Generation Y actually mirror the industry expectations for serving direct selling newcomers of all ages.

Vernon’s list of “Gen Y’s Top Five Needs in the First 90 Days” involve:

Coming up with a career development plan. They need to know where they want to go and what they want out of it.

Feedback delivered in a way they designate and that stretches their best performance.

Support from a team consisting of people who don’t necessarily have a stake in their success. They need mentors, cheerleaders, and a community to calm their fears and answer questions.

Short-term rewards. It could be money, but it could be as simple as sending a card that recognizes them for a specific accomplishment.

Corporate modeling for what the company seeks from the newcomer. In other words, practice what you preach.

Getting Where You Want To Go

It takes hard work on the part of the direct selling company and any new distributor to get where they both want to go, regardless of the company’s messaging style or the newcomer’s generation.

New distributors must see and feel that they’ve got what it takes to succeed, while companies must devise the simplest method for them to get there and speak to them in a way they best understand.

“It’s about giving people very simple, very social, very actionable steps to get the result they are looking for,” says ViSalus’ Mallen.

Differing corporate cultures, product type and breadth, and demographics play into every company choice about the first 90 days and beyond. And while technology’s importance can’t be stressed enough in this high-tech, on-demand world, how companies leverage it to the advantage of newcomers, established distributors, customers and their overall business can be dramatically different.

The overwhelming focus of a new distributor’s first 90 days holds fast to fundamentals that stretch back decades in direct selling. Companies break it down, keep it simple, teach the basics, then repeat, repeat, repeat.

Call it what you will—mastering the mundane, creating new habits—but fundamentals work. Sure, the messaging, methods and tools may be changing, but today’s new direct sellers, whether baby boomers or Gen Y, respond like their predecessors did.

“It’s about giving people very simple, very social, very actionable steps to get the result they are looking for.”
—Blake Mallen, Co-Founder and Chief Marketing Officer, ViSalus

Clear Objectives, Simple Steps

“Our entire culture is based around creating a success story within someone’s first 90 days. We want every Promoter that comes into our community to have both a physical transformation and a financial transformation. That really puts a lot of emphasis on getting someone started out of the gate correctly and focusing on a tangible result. It’s a micro-goal strategy,” Mallen says.

ViSalus knows what it wants—a success story. The objective is clear to new Promoters through Project 10: Lose 10 pounds on the Body by Vi Challenge, submit a before-and-after video, and get registered for weekly cash drawings with the chance to win $1,000. Lose the weight and ViSalus throws in a free T-shirt and donates 30 shake meals to kids dealing with obesity.

It’s simple, really. Drop 10 pounds. Help a kid. Share your story to earn product, cash and a sleek, black BMW, all within the first 90 days.

Simple works because new distributors have full-time lives filled with spouses, kids, dogs and hobbies, not to mention 40-hour-a-week jobs. They want quick, visible strides that fit within the framework of their daily lives. They want progress without feeling overwhelmed or overworked. In layman’s terms, these new entrepreneurs need a “to-do” list and Olson says Nerium gives it to them. “We’ve identified the highest-payoff daily activities that we know will give new Brand Partners the fastest and biggest results,” Olson says.

With Nerium’s 8-Point System, Brand Partners accumulate points, in what they call The Box, by participating in predetermined daily activities. They check company emails, seek personal development, contact and follow up with a customer or prospect, and attend or host a Real Results Party. Brand Partners choose what they do and when. Not every day’s activities will be the same, but the expectation is to earn eight points a day, 40 points a week—mostly by redirecting activities. “Instead of watching that sitcom that does nothing for you, listen to a conference call. Instead of building somebody else’s dream, build yours,” Olson says. “The 8-Point System has caught on like wildfire and it just works.”

That’s because Nerium’s 8-Point System breaks the business down into daily action items that are manageable. By consistently layering point after point, day after day, week after week, new Brand Partners build habits that help them become the very best version of themselves. Their individual growth sustains them and The Box keeps them on track through the ups and downs of the first 90 days and beyond.

Regardless of their age, new distributors often need to step outside their proverbial comfort zones in that first 90 days. Reaching out to people about products or services can be awkward for newcomers. Trepidation and lack of self-confidence impedes progress, so direct selling companies must hold some hands and give newcomers a little push in the right direction.

When It Works! distributors crack open their Welcome Kits, they find Blitz Cards, a coupon of sorts. These help newbies break through the fear of selling by tilting their perspective toward sharing, instead. With Blitz Cards in hand, suddenly striking up a conversation isn’t so scary.

“We evaluate what a new consultant wants out of the business and then figure out what’s between her and that first party.”
—Alexa W., Independent National Executive Director, Thirty-One Gifts

But newcomers to party plan companies like Thirty-One Gifts can struggle with a stage fright of sorts. That’s why Thirty-One reaches out to new consultants, building one-on-one relationships to help pull them over their fears. “We evaluate what a new consultant wants out of the business and then figure out what’s between her and that first party,” says Alexa W., Independent National Executive Director. “New consultants usually stumble in one of two areas: getting over the fear of putting themselves out there or making sure they are armed with enough information.”

So Thirty-One teaches a five-step party process that offers the basics. “We try to keep it very simple, so she can see herself doing it,” says Natalie Johns, Executive Director of Communications and Training for the company. New consultants are encouraged to check out online party demonstrations and tag along with upline directors.

Some of the best learning, Johns says, happens when newcomers watch more experienced consultants in action or network with each other at Celebrate and Connect meetings hosted by field leaders across the country every other month. “It’s so important to the relationship building and networking to be at those meetings,” Johns says. “We really feel like it helps that new consultant learn who we are and feel a part of something bigger, a part of the Thirty-One sisterhood.”

Perhaps nothing works better to bolster newcomer confidence than being surrounded by fellow direct sellers at a live event. By far the most elaborate of newcomer activities—whether nuts-and-bolts regional trainings or national conventions with loads of bling—corporate messaging at these gatherings can still be simple, clear and direct.

Event-driven companies like ACN promote large, live events hosted every 90 days, as well as regional and local trainings because they say these events build newcomer confidence and knowledge and accelerate performance. “Events are a huge piece of our strategy,” says Sheila Marcello, Vice President of Marketing. “People are going to get the training, the motivation, the personal development, the contacts—everything they really need to be successful. Not to mention our events have the energy and excitement of a concert, making them that much more appealing for even the youngest, most progressive IBOs.”

“People need to have the tools to hit the ground running. We know that no matter who you are, money talks. It’s the one approach that truly crosses generations.”
—Sheila Marcello, Vice President of Marketing, ACN

It’s all about momentum, Marcello adds. “People need to have the tools to hit the ground running. We know that no matter who you are, money talks. It’s the one approach that truly crosses generations,” she says. “Our 30-day fast-start bonuses are designed to get our new IBOs off the starting block quickly—and to get some immediate financial rewards in their pockets right away. This ultimately helps fuel their businesses long after that ‘new business excitement’ has worn off.”

Regardless the product, the messaging, the branding, the demographics or the business model, a fast and simple start is what each of these fast-growing direct selling companies offers to newcomers. Thirty-One’s Johns says, “For the new consultant, we know we only have her for a very short time. She’s working her Thirty-One business in the nooks and crannies of her already busy life. We want to be very clear, simple, easy and fun for her on how to be successful.”

Leveraging Technology

Tempting as it may be to jump on the latest tech craze, learning how best to leverage technology keeps newcomers and more experienced direct sellers from getting overwhelmed, confused and bogged down. It is often a slow, yet ultimately profitable, process. ACN started low-key with social media until they knew how best to implement it in their channel. “It had to add value for our IBOs and the company as well,” Marcello says.

What they found on the other side of their patient transition into social media was unexpected and of greater value than originally estimated. Their intent was to inform with social media, but motivational messages from co-founders and leaders gained more traction with IBOs. Facebook and Twitter exploded during ACN’s live events, and they understood that “people wanted to share what they’ve learned as they are learning it,” Marcello says. Social media empowers and excites IBOs and ACN now knows in real-time what they think and feel.

There are infinite ways for companies to successfully inspire, motivate and teach newcomers using technology, but an equal number waste time, money, and social media credibility and clout.

There are infinite ways for companies to successfully inspire, motivate and teach newcomers using technology, but an equal number waste time, money, and social media credibility and clout.

Companies who manage technology well keep tabs on how their people want to communicate with them, their customers and each other. That’s not to suggest companies cave to the tech-challenged baby boomer and become flipbook exclusive, nor should they invest in technology for technology’s sake.

But to attract wider audiences of potential sellers and buyers, companies must diversify and cross-purpose communication using technology. Newcomers, like their more experienced colleagues, need multiple touch points and choices in how to engage: social media; distributor websites; back offices filled with on-demand webinars, PowerPoint presentations and training; 24/7 access to top-notch personal development; entire business management and communication programs; and app after app.

That doesn’t mean newcomers must use everything that’s offered, but as Marcello puts it, “We teach them how they are all interrelated and then they pick the ones that work for them.”

Fair warning, Gen Y, seemingly born with a smartphone in hand, expects technology to work. Send them down a rabbit hole and they’re out. Hit them with “See me, see me, buy me, buy me” social messaging, and “unfriend” it is.

Despite their techno-savvy, however, Gen-Y newcomers often don’t understand the long-term business ramifications of social media. “It’s like standing in the middle of a crowded food court and yelling at the top of your lungs. It doesn’t go away and it’s not private,” Thirty-One’s Alexa W. says. “Some of the younger people need help understanding the impact of what they say and do on social media. They don’t realize how it shapes who they are to those they may not have realized they were reaching out to.”

As effective as social media can be, there’s a cautionary tale here for direct selling companies. “It takes time to educate newcomers,” Alexa W. says. “It takes resources from the company and it takes leadership in the field being proactive and directing people toward company resources.” While social media guidelines established by direct selling companies may seem restrictive at first to some newcomers, they protect the company’s broader vision and branding, as well as the branding of the individual consultant and her ability to sell the product.

Remember, connectivity of all kinds is the millennial’s realm and posers need not enter. Direct selling companies can’t pretend to understand them, they need people who actually do understand them. Gen Y wants authentic messaging, and don’t dare talk down to them. If they have a problem, they know where to find the solution—it’s called Google. But put something on their radar and create a desire that speaks to their values or lifestyle, and it’s magic.

“Knowing a company has a social mission, being able to Facebook or tweet pictures of everybody on the team working with a local Boys & Girls Club—those are the ways companies can appeal to Gen Y,” Vernon says. “You’re not talking about your product, but the fact that you do that kind of stuff gives you a competitive edge.”

Power exists in success stories, especially for a relationship-based industry like direct selling. When someone earns an extraordinary income in their first 16 months, people need to know it and be inspired by it.

Vemma decided to push these stories out through YPR Radio, an innovative podcast on YouTube and iTunes, which reached their consultant base precisely where they live. They hired hip-hop preacher Eric Thomas to hang out and listen to members of the Young People’s Revolution tell their Verve success stories, then uploaded for the world to watch. YPR Radio was so successful connecting with Gen Y, an initial twelve 30-minute episodes turned into 60.

Making the right moves in cyberspace can place companies and their products squarely on anyone’s radar, Gen Y or otherwise, and leveraging technology can mean developing a flashy app with every bell and whistle, or simply moving a great PowerPoint presentation to a place where everyone can find it. Regardless, technology ideally drives offline conversation that builds relations, empowers newcomers to feel smarter and more confident, delivers messaging in a way that a chosen demographic can best hear it, and inspires people to engage in the company’s corporate culture. In the first 90 days, direct selling companies need to reach the newcomer in each of these ways, and the newcomer needs to be able to reach right back. Do that and the industry makes magic!

The LIMU Company: From Success to Significance in Under a Decade

May 1, 2013 by DSN Staff Leave a Comment

Click here to order the Direct Selling News issue in which this article appeared.

Company Profile

Founded: 2004
Headquarters: Lake Mary, Fla.
Founder: President and CEO Gary Raser
Products: Nutritional beverages, weight-management products and energy drinks based on limu moui and fucoidan

Gary Raser has his eye on “the 96 percent,” the huge majority of people who have never been in the direct selling industry. And he’s reaching them.

Gary Raser

Even before he launched The LIMU Company in 2004, Raser looked for new ways to improve lives. In fact, his desire to start a direct selling company was fueled by his gratitude to the industry that had been so good to him and his family. He wanted to find a way to create that same success for others, so he searched the world for something unique that could become the foundation for a product line to support a successful new direct selling business. He discovered it in the waters of the South Pacific near the island nation of Tonga.

For more than 3,000 years Tongans have dived to the ocean floor to harvest clumps of limu moui, a sea plant that grows abundantly there. Natives attribute their vibrant good health and longevity to using it, but until recently they didn’t know what made the treasured plant so healthful. Today science has provided the answer. Limu moui is rich in fucoidan, a nutrient now cited in more than 1,000 unsolicited, independent, third-party scientific studies that all validate its life-sustaining, immune-supporting properties.

When Raser learned about limu moui and its key nutrient fucoidan, he knew immediately that he was onto something special. Now the next step was to turn it into a product powerful enough to build a business on. He worked with food scientists to develop a proprietary, chemical-free technology for extracting fucoidan in a form that’s usable by the body without destroying LIMU’s other delicate but extremely powerful nutrients. The result: LIMU ORIGINAL®, the first of what is now a carefully coordinated line of products. Along with fucoidan, the beverage boasts over 70 vital nutrients, including immune-supporting antioxidants, polyphenols, amino acids, glyconutrients, vitamins and minerals.

As the product was being formulated, Raser developed the bones of a business—the compensation plan and other essential elements. Then he tapped into the vast business network he had developed over 20 years in direct selling. The response was immediate. Over a single weekend, more than 9,000 people sent in distributor applications. In the first year, they reached $10 million in sales—and all without incurring corporate debt.

Slow Economy Changes the Game

LIMU products all contain the supernutrient fucoidan, known worldwide for its health benefits.

That strong start continued until the economic downturn that slowed many direct sellers. But for Raser, the company’s President and CEO, it was a signal to step back and seek out better ways to do business. The process transformed the company into the growth machine that today produces greater sales each month. How? By thinking young.

“If you want to attract a younger, hipper crowd, you have to change,” Raser says. “Young people today use social media because they like immediate communication, and they like to see quick results, too. Our society wants it now.”

LIMU made a sweeping series of changes that overhauled its basic marketing methods, helped new distributors get profitable quickly, leveraged new products and revved up recognition.

First, it jettisoned traditional opportunity meetings and instead instituted LIMU Experience parties. Its distributors, which it calls Promoters, introduce others to the company’s products and opportunity through these home parties, which began in 2011. In the casual setting, Promoters set out shots of all three product lines—LIMU ORIGINAL, chocolate and vanilla LIMU LEAN®, and the company’s energy drink BLU FROG® ENERGY—along with marketing materials from the Promoter’s Fast Track Pack. LIMU trains Promoters to invite guests to taste, taste, taste each product, and then let the LIMU Experience video, one of the company’s many sales tools, tell the story. Success stories, product orders and enrollments cap off the social time.

Parties are designed to help new Promoters develop a customer base and also quickly enroll three other Promoters. It’s all part of LIMU’s “3 for Free” program, which lets them get their own auto-shipped LIMU products for free. Raser says it greatly increased distributor retention and total sales volume.

LIMU made a sweeping series of changes that overhauled its basic marketing methods, helped new distributors get profitable quickly, introduced new products and revved up recognition.

The switch from meetings to LIMU Experience parties has been a game changer. LIMU’s Vice President of Business Development Ryan Barson says they have overcome three critical challenges in direct selling.

“People don’t like to sell or recruit; they object to the cost of monthly auto-ships; and they’re concerned about the reputation of the industry,” Barson explains. “LIMU Experience parties help overcome all of them.”

Held quarterly, LIMU corporate events attract a highly enthusiastic audience of Promoters.

The company rebranded its car program, officially calling it The LIMU BMW Club.

LIMU’s custom-designed mobile app is an important “new school” business building tool.

Changing Demographic

The parties change recruiting and customer gathering into a social experience where, instead of selling, Promoters invite and share. The 3 for Free program kicks in at the same time when customers order and new Promoters enroll at a LIMU Experience party. And the industry’s old-hat reputation evaporates when guests learn that this isn’t their father’s opportunity meeting or network marketing company.

The combination of LIMU Experience parties, new products and social media has shifted the Promoter demographic significantly younger.

In fact, the combination of parties, new products and social media has shifted the Promoter demographic significantly younger. LIMU says parties helped because they’re simply more fun and they fit the lifestyles that people already have. The economy of the last few years has caused people to entertain at home, rather than spend the money to go out. People have found that they enjoy the casual atmosphere of socializing with their friends at home. LIMU Experience parties take advantage of that trend.

The company’s product line was carefully crafted to do a specific job: expand the LIMU Nation demographic. While LIMU Original appeals to health-conscious consumers, the other products attract a group with very little overlap. LIMU Lean was developed with the world’s obesity epidemic in mind. It is a line of three products that support the goals of people who want to drop pounds and get more fit. And BLU FROG Energy taps into the growing energy drink market—a market packed with that important 18- to 35-year-old demographic—with a healthy alternative to retail products that are hyped up with sugar. All the products are rich with fucoidan, of course.

As the products were introduced and the parties continued, a new group of customers and Promoters got hooked on The LIMU Company and told their friends. And many of those friends were young.

“As soon as we started having parties and telling Promoters to just invite people to your home, let them taste the products and show them our DVD, our growth exploded,” Raser says. “We started having 20-year-olds driving BMWs. Their friends saw them and said, ‘I want one.’ We give them an absolute system that they like doing, and it works. When young people have success, they tell everybody. We’re blowing up with young people. It starts with the way we introduce the business.”

Introducing LIMU at a series of parties, earning free products and reaching the company’s first key promotion level, 2K VIP, opens lots of doors that Promoters can go through as they build their businesses: commission payments, qualification for The LIMU BMW Club, incentive trips and cash bonuses. LIMU even takes its LIMU Experience parties to the max with its own LIMU Ultimate Experience Party, which it holds quarterly. The recognition event is packed with prizes and fun. The company invites Promoters to submit their stories; then it chooses the top stories. LIMU has already awarded millions in product, prizes, cash and trips to the winners. Prizes included everything from Apple iPads and MacBooks to Limu Swag Packs and all-expense-paid trips to destinations like Disney World, New York and San Francisco.

From Success to Significance

The system is bringing a lot of people under the LIMU tent. The thousands who attended the company’s March annual convention heard Raser announce its biggest goal yet: to shift from success to significance.

“The significance of the $100 million milestone is the hundreds of thousands of lives we have touched, the success people have had and the benefits people have had from the products.”
—Gary Raser, Founder, President and CEO

“You’re successful as a human when you reach some of your goals, health-wise and financially, for example,” he says. “This company is very successful. This year we will pass $100 million in sales. We have many successful distributors. But when you’re focused on significance, life has more purpose. You’re helping new people become successful. The significance of the $100 million milestone is the hundreds of thousands of lives we have touched, the success people have had and the benefits people have experienced from the products.”

To help Promoters make the shift, LIMU recently introduced a new Quick Start Guide and Getting Started DVD, which feature top LIMU leaders teaching new Promoters how to prepare for and create success with LIMU.

“We’ve been growing so fast in the last 18 months, it’s been hard to keep up with the new people, to give them the guidance, training and leadership they need,” Raser notes. “These tools were developed for those new people to get them to focus early on helping others.”

Raser emphasizes that many of the recruits from the last year and a half are young people who have never been involved in the direct selling industry before—some of the 96 percent LIMU is beginning to attract. He says he has seen promoters enroll in the business and reach the 200K rank, the third-highest level in the LIMU compensation plan, within six months.

“Because we have so many new Promoters experiencing success, it has created momentum among young people,” he explains. “When you can get a BMW payment made for you by LIMU in your first month, other young people definitely take notice. They want that same success.”

The new Getting Started DVD features many of those rising stars—top income earners who explain in detail how people can party their way to free products, a new car, improved health and a better life, all by helping others. Partnering with the video is LIMU’s growing online presence. John Raser, the company’s new Director of Communications and Gary’s son, leads the social media initiative and took the stage for the first time at the convention.

The company also rebranded its car program, officially calling it The LIMU BMW Club. The video announcing it got 3,300 YouTube views in its first five days.

Despite its impressive growth, Raser says the company won’t have arrived until every Promoter is able to see true success based on their own commitment, dedication and sacrifice. He is also looking forward to taking LIMU into other countries and by the end of 2013 expects to announce plans for countries it will enter next year.

Those big plans are being fueled by the growth LIMU has seen recently. While Raser won’t reveal specific numbers, he describes the rapid expansion.

“In 2011 we were almost two times as big as in the previous year,” he says. “In 2012 we were 3.5 times the sales volume of the previous year. And in the first two and a half months of this year, we’re more than double where we were last year, year-to-date. We’ve grown by hundreds of percent a year for three years now. That’s significant in the recent economy.”

A Significant Hand Up

LIMU employees are personally involved in all of the company’s charitable initiatives.

While LIMU announced its shift “from success to significance” at its annual conference in March, its focus on giving back in a significant way to improve the lives of people facing tough times dates back to its early days. Its philanthropic initiative, LIMU GIVES, provides an official umbrella that lets the company give a hand up to people who need it.

LIMU’s Founder, President and CEO Gary Raser knows that need firsthand. He grew up in a poor family, even living with his dad in their car at times.

“Helping people who are less fortunate is a big deal to me,” he emphasizes. “I believe with all my heart that people want a hand up, not a hand out.”

So LIMU GIVES focuses on supporting organizations that help people get back on their feet, and stay there. Organizations such as Orlando Union Rescue Mission, Halifax Urban Ministries and Second Harvest Food Bank provide emergency services and then education and counseling that help people overcome homelessness and hunger long term. LIMU’s staff is granted paid time to serve the homeless at the organizations’ events. LIMU also dedicates services and funds to shelters that offer safety to women and their children and to research that seeks cures for catastrophic diseases in children. Its beneficiaries are organizations as varied as St. Jude Children’s Research Hospital, Ronald McDonald Houses, The Children’s Home Society of Florida and Meals on Wheels.

LIMU Brand Ambassador Rowdy Gaines is heavily involved with LIMU’s philanthropic activities, while helping Promoters with their business-building efforts. When he visits a community, the three-time Olympic gold medalist and Masters swimming record holder attends LIMU Experience parties and other Promoter-arranged events. He typically explains to attendees that he drinks all three LIMU products every day. Then he visits schools and hospitals to talk about the importance of good nutrition and exercise. In cities that are home to a Ronald McDonald House, he frequently visits the families of sick children. Gaines also attends gatherings at local swim clubs, speaking to kids, holding LIMU-sponsored swim clinics for kids and Masters-level swimmers, and serving LIMU ORIGINAL.

“We do all this to help people who are in challenging, difficult times in their lives in America,” Raser explains. “This is my home, this company’s home. Enough American people need help now, so we’re staying focused on philanthropy here.”

Youngevity: A Perfect Balance

May 1, 2013 by DSN Staff Leave a Comment

Click here to order the Direct Selling News issue in which this article appeared.

Company Profile:

Launched: 1997
Headquarters: Chula Vista, Calif.
Top Executive: Steve Wallach, CEO and Chairman of the Board
Products: nutrition, gourmet coffee, weight management and mineral makeup

When Youngevity Essential Life Sciences and Javalution Coffee Co. merged to form AL International in 2011, the executives assumed they were in for some surprises. But the biggest surprise of all was how smoothly everything dovetailed together. With the additional merger of Financial Destination Inc. (FDI) that October, this newly formed entity has outperformed all expectations.

“I was surprised by the growth that occurred even while we were learning about each other—how quickly we succeeded and how much positive came out of the marriage of these companies,” says Bill Andreoli, who founded FDI and now serves as President of Youngevity.

CEO and Chairman Steve Wallach believes that’s because they all understand the direct selling space. CFO Dave Briskie co-founded and was CEO of Javalution Coffee Co. with JavaFit, a line of healthy coffees sold via direct sales. But his primary experience is in traditional businesses.

“I was surprised by the growth that occurred even while we were learning about each other—how quickly we succeeded and how much positive came out of the marriage of these companies.”
—Bill Andreoli, Founder of FDI and President of Youngevity

“Steve and Bill’s whole lives have been in direct selling,” Briskie says. “Among the three of us, that’s a perfect balance.”

AL International’s blend of direct sales and traditional business is a winning combination. In 2011 AL International netted $40 million in sales—$16 million more than Youngevity and Javulation’s combined sales the previous year.

And in 2012 the nutritional and coffee company’s sales nearly doubled year over year with sales over $75 million. That exceeded the Opus Research Group’s prediction of $66 million by almost $10 million. “We beat the 2012 forecast, and we anticipate that continuing,” Briskie says. “The 2013 forecast is $87 million. I’d be disappointed if we didn’t do more.”

One Big Happy Family

(Pictured left to right from top) Steve Wallach, CEO and Chairman of the Board; Bill Andreoli, President; Michelle Wallach, Chief Operating Officer of Youngevity; Dave Briskie, Chief Financial Officer, President of Commercial Development, Director; Vanessa Hunter, Vice President of Marketing; Steve Schulz, Vice President of Training; and Mike Randolph, Vice President of Leadership Development.

Renowned researcher, veterinarian and naturopathic physician Joel Wallach founded Youngevity (then known as American Longevity) in 1997 along with his wife, Dr. Ma Lan. His conviction that everyone benefits from 90 essential dietary supplements keeps him going. At 72, he’s still on the road 300 days a year, sharing the company’s nutritional message.

As early as 2003, Youngevity fueled its growth by partnering with and acquiring other direct selling companies. In the year and a half since the merger, the number of companies that have joined the Youngevity family has continued to grow. It now exceeds 20.

“We want to be one of the top 10 direct selling companies. We know in order to do that we need to expand internationally.”
—Steve Wallach, CEO and Chairman

But Steve prefers not to focus on the number of acquisitions. For him, it’s about people, products and places. “People are the most important asset,” he says. “We look for great people in the field, terrific leaders.”

And the executives at Youngevity aren’t egotistical enough to think that they have a corner on the market when it comes to good products. “When we partner with or acquire companies, we get fantastic, amazing products. For instance, Projoba’s lead product PollenBurst is one of our top 10 best-selling products companywide,” Steve says.

Since the merger, Youngevity has become even more intent on expanding globally. Though the company already has a presence in more than 50 countries and 10 percent of their revenue comes from international markets, they know that must increase to reach their goals.

“We want to be one of the top 10 direct selling companies,” Steve says. “We know in order to do that we need to expand internationally. One way to do that is to find companies that have great products and great people who already have the licenses and logistics figured out in countries where we want to go.”

Youngevity’s company headquarters in Chula Vista, Calif.

Rebranding the Message

When FDI and Youngevity merged, Youngevity gained the considerable talent of Andreoli. He is the force behind the rebranding of Youngevity’s message. With more than 400 products, Youngevity needed a clear focus. In November 2011, Youngevity launched its 90 for Life campaign, which Andreoli masterminded.

“The 90 for Life campaign was something we came up with to summarize Doc Wallach’s 40-year message,” Andreoli says. “That became the slogan for the company. Before 90 for Life, you could go to four different meetings, and at each one they would be pushing a different product line based on what they liked best.”

Andreoli is behind the company’s revitalized training program, as well. “We’ve expanded the tools available to our distributor base,” he says. “We offer live seminars, recorded seminar webinars, conference calls, DVDs and videos in the back office. We teach our people to leverage the tools.”

In the merger, the entire FDI team was kept intact. Along with training, Youngevity puts in great effort to recognize people, which has energized the distributor base. Seeing people receive big checks, rings, plaques and other forms of recognition is inspiring. “All of a sudden they believe they can build a business,” Andreoli says.

In January of this year, Marilu Henner came on as Youngevity’s brand ambassador. Because of health issues in her own family, she’s been interested in nutrition her entire adult life. “Her deep knowledge of nutrition makes her a great brand ambassador for Youngevity,” Andreoli says. “That’s essential. Our people would see right through someone who doesn’t believe in what we’re doing.”

Already, Henner is creating a niche. She’s involved in some Youngevity conference calls and training, and the company is looking for products to formulate based on some of her passions.

Social Media Makeover

It’s been less than a year since Youngevity began harnessing the power of social media, but in that time, they’ve created a close-knit, thriving online community. They’re on several social media sites, including Facebook, Twitter and Pinterest. Already they’re seeing the impact on their bottom line: Because of social media, some dormant customers have reactivated their accounts after a year or more.

“Social media may have its curses and its challenges, but at Youngevity, it’s been a blessing. It has re-engaged people who for one reason or another took a different path. Social media has brought them back around to us,” says COO Michelle Wallach.

“[Social media] has re-engaged people who for one reason or another took a different path. Social media has brought them back around to us.”
—Michelle Wallach, COO

It’s an opportunity the company almost missed. In 2011, in a meeting with the Wallachs, Henry Weinaker told Michelle that if she hired him, he would make her social media great. She declined, saying, “Why would I pay you to do something that I can do for free?”

He agreed that she could, but told her she wouldn’t. Three months later, she realized he was right. “I didn’t have enough knowledge or tools to do it every day,” she says. “I called and apologized, but he had moved on.” Just a couple months later, they crossed paths again. This time, Weinaker was available.

With Weinaker’s guidance as Director of Social Media, Youngevity has gone from zero to 150,000 engages a week on social media sites. Michelle and Weinaker believe that’s because they carefully craft their content.

“Every time Michelle and I get ready to post, we ask ourselves, ‘How would friends of our fans react to seeing this post?’ It’s not simply about targeting our current base,” Weinaker says. “It’s about what would appeal to the broadest audience. We want anyone who sees it to say, ‘Wow, that’s really cool,’ because that’s the only way to grow an audience online.”

Michelle adds, “The posts aren’t about advertising or shoving Youngevity down anyone’s throats. I own the company, and if that’s what we were doing, I’d turn myself off. Henry has educated us on including the subliminal message that Youngevity sent this out without including a product ad. It’s not about selling. It’s about sharing something with them that gets them really inspired and excited.”

It’s a big mindset shift, but Michelle has come to see the value in the social media fan base. Some may not have much money to spend with the company. But they are advertising and spreading the word about Youngevity without any money going into their pocket. “That becomes more valuable to me than the person who is spending $50 and not sharing the Youngevity message,” she says.

“Content is the king of engagement. Every day we try to outdo ourselves. How can we get even better? You can’t lose if you do that.”
—Henry Weinaker, Director of Social Media

Keeping the fan base engaged requires consistency. To keep them coming back each day, Youngevity has incorporated special days like Chocolate Fridays with giveaways of Youngevity healthy chocolate, as well as Deal Day Wednesdays and Take a Pic Tuesdays.

“We stay focused on the basics,” Weinaker says. “We’re always trying to get better at core things. Our greatest challenge every day is content. Content is the king of engagement. Every day, we try to outdo ourselves. How can we get even better? You can’t lose if you do that.”

They believe their success comes down to the relationships being built online. “We’re really friends with our fans,” Weinaker says.

Michelle adds, “I have a well-paid marketing team. It’s their job to sell the products. It’s our job to keep everybody focused and feeling like they belong.”

Spotlight on Products

Along with tweaking Youngevity’s branding, Andreoli is constantly looking for ways to better market Youngevity’s products. At the end of 2012 the company launched the Healthy Body Challenge. The foundation of the Healthy Body Challenge is the healthy body packs. Distributors and customers are encouraged to “Choose Your Challenge,” and select one of seven packs: Healthy Nutrition, Weight Loss, Blood Sugar, Bone and Joint, Digestive Support, Brain and Heart, or Athletic Performance. By referring three friends, distributors and customers can get their own product free. “Everyone fits into one of these categories,” Andreoli says. “That’s why it’s worked out so well.”

The company is especially excited about the results of clinical research studies performed by Clemson University-Institute of Nutritional Research. The purpose of the clinical research was to discover potential benefits of Youngevity’s signature core products, Beyond Tangy Tangerine and Ultimate Classic. The study showed the products to be safe—they did not show any genotoxicity. Also, they heightened the body’s protective responses to possible inflammation.

Going Public

One of AL International’s biggest milestones in 2012 was becoming a public company. Steve says the company decided to become public to create transparency. “We in the industry are always trying to improve the credibility of the industry,” he says.

As CFO, much of the responsibility fell on Briskie. That’s on top of his many other duties: Since the merger, he’s continued to run CLR Roasters, AL International’s traditional coffee roasting company, which sells coffee to numerous cruise lines, major retail giants such as Wal-Mart, and various restaurants as well as supplying the coffee used in the JavaFit line.

Despite the added workload, he believes going public was the right decision because it strengthens the company by allowing distributors to become investors. “Part of our comp plan is structured so that they can earn stock options,” he says. “Many distributors actually invest in the company.”

Though Youngevity is proud of the investment they’ve put into becoming a public company, it has been an expensive, time-intensive commitment. Briskie estimates it will cost about $1 million each year to retain their status as a public company. But he thinks that, for their company, the cost is worth it. “Inevitably our distributors run into someone who has suffered a bad experience. Being public provides a great deal of comfort to our customers and distributors that we’re going to be here for the long-term.”

Be the Change

“Being public provides a great deal of comfort to our customers and distributors that we’re going to be here for the long-term.”
—Dave Briskie, CFO

Giving back has always been an important Youngevity value. Early on, the company required its distributors to devote designated hours to charitable endeavors. This month the company will roll out its Youngevity Be the Change Foundation at the company’s annual convention.

The program will be funded through a partnership between Youngevity and its distributors. Distributors will contribute one-half of their commissions on specific “Be the Change” products, and the company will match this contribution at a minimum of 150 percent. The money will go to the foundation, where it will be distributed among approved charities. The company even expects to expand the foundation in the United States and worldwide as the program gains traction. Youngevity will underwrite the cost of running the foundation and administering the program.

Briskie emphasizes that Be the Change is more than just monetary donations. “We are developing ‘Be the Change Days’ that will take the outreach program to the streets, where we will roll up our sleeves and work together alongside our distributors to improve the lives of others within various local communities.

“As CFO of the company I am very passionate about the program,” Briskie says. “It will be one of our greatest achievements as a company.”

Amway: Growing by Giving

May 1, 2013 by DSN Staff Leave a Comment

The Amway One by One Campaign for Children is marking its 10th anniversary having helped millions of children live better lives, including children near its world headquarters in Ada, Mich.

Click here to order the Direct Selling News issue in which this article appeared.

Company Profile:

Founded: 1959
Founders: Rich DeVos and Jay Van Andel
Headquarters: Ada, Mich.
Leadership: President Doug DeVos and Chairman Steve Van Andel
Products: Nutrition, wellness, beauty and home products

The direct selling industry is home to some of the most generous people on the planet. From distributors all the way up to the founders of the industry’s largest companies, direct selling attracts people who define their success by what they can do for others.

It is therefore fitting that the industry’s newest leader, Amway, would much rather talk about its corporate giving program than its ascent to the top spot in the industry as recognized by Direct Selling News.

Jesse Hertstein

For Amway’s leaders, that number is most significant because of what it equips the company to do through its signature charitable initiative: the Amway One by One Campaign for Children. In fact, when asked about how Amway sales growth affected the company’s ability to launch the campaign, Jesse Hertstein, Senior Corporate Citizenship Specialist, responded: “The Amway One by One® Campaign for Children has become a global movement. We do it because it is the right thing to do.”

About the Company

The Amway story begins in the late 1940s, when Rich DeVos and Jay Van Andel invested $49 to buy their first sales kit from NUTRILITE, a vitamin and mineral supplement company that had been launched in 1934 by nutrition pioneer Carl Rehnborg. DeVos and Van Andel spent the next 10 years growing a very significant business within NUTRILITE before having what DeVos described as an “internal squabble” that led them to part ways with Rehnborg.

“The Amway One by One® Campaign for Children has become a global movement.We do it because it is the right thing to do.”
—Jesse Hertstein, Senior Corporate Citizenship Specialist

In a video available on Amway’s website, Rich DeVos explains that “we liked the marketing plan; we just wanted to sell our own products… products that everybody uses.”

That became the beginning of what today is known as Amway—an abbreviation for the “American Way.” DeVos and Van Andel established the company in 1959 in Ada, Mich. The company’s first product was Liquid Organic Cleaner (L.O.C.), which was among the very first concentrated, biodegradable and environmentally friendly cleaning products available on the market. Since then, Amway has expanded from home products to become a global leader in the categories of nutrition, wellness and beauty.

Much of Amway’s recent success can be credited to its “Growth Through Innovation” strategy. This effort was focused on improving Amway’s business in current markets by challenging longstanding norms and advancing their products, business opportunities and company as a whole. The result was the fostering of a culture that is much more focused on continuous innovation.

Amway’s leaders now describe the company as a “global community” that is operating in more than a hundred countries and territories. The company reports that it pays out more bonuses than any other direct selling company, which has enabled it to build a staggering corps of more than 3 million independent business owners.

And in a fitting turn of events, Amway is now the exclusive distributor of NUTRILITE, the brand that inspired the creation of Amway itself.

Amway distributors and employees volunteer for hundreds of projects. They include (left to right) sponsoring afterschool programs throughout North America; providing kitchen facilities to help prepare nutritional meals to children in rural China; and building homes for families in Latin America.

About the Campaign

Amway employees in Michigan volunteered more than 20,000 hours to local children’s causes in 2012.

Launched in 2003, the Amway One by One Campaign for Children rallies the resources of the entire Amway family to make a difference in the lives of children around the world. Through its vast network of international distributors, the company seeks to create local partnerships that improve the way children around the world live, learn, achieve and play.

Through its vast network of international distributors, Amway seeks to create local partnerships that improve the way children around the world live, learn, achieve and play.

Amway’s support goes far beyond simply engaging their massive workforce in grassroots volunteer efforts or writing corporate checks to support charitable endeavors. The company has deeply embedded the campaign into its own branding efforts, going so far as to dedicate the resources necessary to publish an almost daily blog on their website that features different aspects of the campaign, the causes it supports and the issues that affect children around the globe (see it online at http://blogs.amway.com/onebyone/ and www.amwayonebyone.com).

The blog does not serve as a promotional piece for Amway as much as a way to educate distributors about the critical needs that they are addressing through Amway’s One by One Campaign for Children. Recent articles have highlighted everything from the results of a recent study on the positive effect of one-on-one sponsorships of children to a series of quotes from presenters at a recent conference on Corporate Social Responsibility (CSR) to poignant stories on the challenges facing orphans in the Ukraine. There is surprisingly little mention of Amway, revealing that the heart of the campaign truly is focused on making the maximum impact on children.

“It made the most sense for our business and for our people because Amway is a business of helping people reach their potential—and children have the most potential and often need the most help to succeed.”
—Jesse Hertstein

Hertstein explains how the campaign was created: “In the early 2000s, we did thorough research of sponsorships and charitable projects we had supported. It became clear to us that, while we had been doing a lot in many different areas, the children’s causes were the ones that our distributors and employees were most passionate about and where they saw the biggest impact. So, in 2003, we made a commitment to focus most of our CSR efforts on helping children. That year we launched the Amway One by One Campaign for Children. It made the most sense for our business and for our people because Amway is a business of helping people reach their potential—and children have the most potential and often need the most help to succeed.”

The campaign quickly began to make a significant impact not only on the charities, but on the Amway distributors themselves. Hertstein shares that Amway’s leaders did not foresee how much their distributors would drive the program. Since the launch of the campaign, several distributors have sent in stories about how they built their Amway businesses solely to support the causes they cared about. Some of the company’s top distributor leaders have been inspired to start their own foundations, scale up other nonprofit organizations or even address issues that others didn’t notice before.

“We didn’t realize how passionate our distributors were about giving and sharing of their time, talent and resources,” says Hertstein. He shares that even Amway’s highest-level distributor, Holly Chen from Taiwan, has credited the One by One Campaign with driving her to stay in the Amway business and to inspire others to get involved.

Todd Woodward

Todd Woodward, Amway’s Vice President of Corporate and Integrated Communications, credits the direct selling industry with creating a culture that naturally fosters such efforts.

“It has to do with the nature of our business and with what our people stand for,” he explains. “Human potential is at the cornerstone of the Amway business and the driver of our social responsibility efforts. We believe that by nurturing and supporting human potential, and by addressing issues that prevent individuals from reaching it, we can help people. Because Amway is an integral part of communities in which it operates, the company, its distributors and employees continue to create positive change. Amway One by One is one such program that helps harness their passion for the business and transfer some of that energy toward a great global cause.”

The Campaign’s Impact

The NUTRILITE® LITTLE BITS™ program helps fight chronic malnourishment in children in Zambia.

Over the past 10 years, Amway’s distributors have logged over 2.7 million volunteer hours and raised $190 million for children’s causes worldwide. For Woodward, the campaign’s success is only beginning.

“The Amway One by One Campaign for Children has a ripple effect on people all around the world. It has grown exponentially and shows no signs of slowing down. The most exciting aspect, though, is what the Campaign has yet to accomplish. Each day we are getting better at mobilizing people around the world and inspiring them to improve the lives of children in unique and powerful ways.

“The efforts of Amway One by One® have transformed the lives of 10 million children in 10 years.”
—Todd Woodward, Vice President of Corporate and Integrated Communications

“2013 is a big year for Amway One by One,” Woodward continues. “The efforts of the campaign have transformed the lives of 10 million children in 10 years. The 10th anniversary gives us an opportunity not only to reflect on what our distributors and employees have done, but it also serves as a springboard for the future. The global volunteer day we have planned for Nov. 20 will propel us to reach the next milestone of transforming the lives of 10 million more children in an even shorter time.”

Amway’s top executives are also engaged in supporting the campaign. As President Doug DeVos shares, “Each child helped and each life impacted is a testament to the incredible giving spirit of Amway distributors and employees. We are inspired by these global citizens as they continue to make a difference around the world, one child at a time.”

Steve Van Andel, Amway Chairman, agrees. “Amway people are truly remarkable and we are impressed and humbled by their gifts of time and talent to help children live better lives.”

Amway Charity Foundation in China helped build 754 kitchens that provide nutritious meals to more than 350,000 students in rural areas.

Since 2003, the Amway One By One® Campaign for Children has transformed the lives of 10 million children worldwide.

What Other Companies Can Learn from Amway

“Each child helped and each life impacted is a testament to the incredible giving spirit of Amway distributors and employees.”
—Doug DeVos, President

One of the primary challenges that any multinational company faces when launching such an integrated CSR strategy is how to adapt it to local markets. As Hertstein explains, Amway learned that each market was filled with both its own unique challenges facing children as well as a great variety of interests on the part of the distributors. Amway and its leaders had to learn quickly how to be flexible and responsive to local needs while maintaining the global focus of the overall campaign.

“As a global company, we found that the issues ranged from poverty to disease to lack of access to education and more,” Hertstein says. “We realized that while we needed to meet local needs and find suitable local partners, we also needed to give our people flexibility to pursue causes that they were passionate about and allow them to support programs that had been already successful. Some partnerships with NGOs [non-governmental organizations] or distributor supported programs were already long established. For example, our distributors in the United States had been supporting children with disabilities through Easter Seals, so when Amway One by One was launched, we continued to support that program. We soon found out that once we embraced programs that allowed our distributors to commit to causes they cared most about, our corporate initiative began to transform into a global grassroots movement.”

Even from a business perspective, there is a very strong rationale for developing an ambitious CSR strategy. Despite the tremendous investment of time and money that Amway has invested into children’s charities around the globe, the company has continued to prosper. Indeed, its growth has almost accelerated in the past 10 years at the same time as it has positively impacted the lives of 10 million children through the One by One campaign.

As the largest direct selling company in the world, Amway remains guided by the same principles that have shaped its successful One by One Campaign—to help people live better lives.

VideoPlus University: Raise the Bar!

May 1, 2013 by DSN Staff Leave a Comment

Stuart Johnson, Founder and CEO of VideoPlus, hosts industry executives for the 12th year of VideoPlus University.

Click here to order the Direct Selling News issue in which this article appeared.

On April 3-4, more than 500 direct selling executives from around the world gathered at the Gaylord Texan Resort & Convention Center in Grapevine, Texas, for what has become one of the industry’s most unique events. Now in its 12th year, VideoPlus University (VPU) provides a forum for the sharing of ideas, challenges and best practices among industry executives.

This year the format once again mirrored the popular TED Talks—short and concise messages from many speakers—avoiding the more common practice of long presentations by just a few. The overall effect is a sort of “group huddle” for the entire industry that lifts and benefits all involved with the plentiful flow and interchange of ideas.

Throughout the two-day period, a remarkable total of 24 speakers gave their 18-minute “power talks” centered on the event’s challenge to “Raise the Bar.” Darren Hardy, Publisher and Founding Editor of SUCCESS magazine, served as master of ceremonies for the event.

Host Stuart Johnson welcomed the record crowd by voicing his commitment to continuing to provide a forum for discussion and exploration of best practices for direct sellers. Having served as Founder and CEO of VideoPlus for more than 25 years, Johnson has cultivated a unique and comprehensive understanding of the direct selling industry. He observed that “the most successful companies in the marketplace today are companies who are clearly more customer and product focused, whose products and services are unique and effective, and who have simple messages that cut through the clutter in the marketplace.”

It is Johnson’s desire that VPU continue to offer industry leaders the knowledge and tools to cut through that clutter and engage in what he terms “disruptive thinking” in order to move their businesses forward.

Among those who shared a wealth of industry experience, best practices, and challenges were several female executives, including Amway Vice President of Sales Sandy Spielmaker; Princess House President and CEO Connie Tang; Miche Executive Vice President Jayma Woods; Tastefully Simple Founder and CEO Jill Blashack Strahan; Primerica Chief Marketing Officer Julie Seman; and Viridian Senior Vice President Meredith Berkich.

Always favorites among audiences interested in personal development, best-selling author and leadership expert John C. Maxwell and Primerica Co-CEO John Addison also made appearances.

Darren Hardy, Publisher and Founding Editor of SUCCESS magazine, serves as master of ceremonies.

VideoPlus University: Raise the Bar.

VideoPlus University draws a record crowd.

The power-packed event embodied the spirit of “leadership completing each other, not competing with each other”—a principle Mark Pentecost, CEO and President of It Works! Global, emphasized during his talk.

From Solavei—a newcomer to the cell phone services market working with provider T-Mobile—CEO Ryan Wuerch presented four themes that recurred often throughout the event: the economy, social media, mobile and social selling. In economic conditions that drive people to new business opportunities, direct selling offers independence and encourages innovation. Today’s direct sellers can also reap the considerable benefits of a consumer base attuned to all things social.

The social connection inherent to direct selling facilitates what Tastefully Simple’s Blashack Strahan referred to as connecting through stories. “Creating deep human connection is the key to building trust,” she said. One company actively developing a social culture from the top down is ViSalus. Co-Founder and CMO Blake Mallen, who interacts regularly with his 70,000+ Facebook fans, shared insights into how companies can foster social interaction. Mallen emphasized the importance of including everyone, rather than appealing solely to distributors, consumers or any other sector of the business. Using social platforms as a means of starting conversations requires, in Mallen’s terms, “a simple, social selling message.”

Other speakers echoed Mallen’s call for simplicity in building brands and products or services. According to Pentecost, who led his team at It Works! Global to over 400 percent revenue growth in 2012, “Anyone can complicate this business. The real genius is making it simple.”

That is precisely what Co-Founder and CMO Chris Chambless and his team have successfully accomplished at Ambit Energy. Chambless shared his tips for creating momentum through a simple, focused message and product, and most importantly, delivering on what’s promised. “I love this industry and the opportunities it offers,” Chambless said. “I think it’s the best hope in entrepreneurship.”

In conjunction with VPU, participants had the opportunity to attend the DSN Global 100 Celebration. The event unveiled the results of research and ranking conducted to identify the top 100 companies in the industry globally. The DSN Global 100 list, which will appear in the June 2013 issue of Direct Selling News, profiles these companies and their impact on lives around the world. In addition to revealing this year’s rankings, the event celebrated the recipients of three Bravo Awards for outstanding achievements in 2012.

VideoPlus University is already scheduled for 2014. Again to be held at the Gaylord Texan Resort in Grapevine, Texas, the event will take place April 23-24. Registration opens Nov. 1, 2013. Find out more at www.videoplusuniversity.com.

Letter from John Fleming, May 2013

May 1, 2013 by John Fleming Leave a Comment

The DSN ranking of companies for 2012 is now complete and posted on our website. On April 3 of this past month we had the honor of once again hosting over 300 guests at the 2012 DSN Global 100 Banquet. We always look forward to rolling out the red carpet, bringing in the lights and a bit of glitz, and enjoying an evening of celebration inclusive of the DSN Global 100 recognition. We identify 100 companies, but the evening is always about honoring all who compose and make the direct selling industry possible.

Brian Connolly, Chairman of Miche and former Executive Vice President of Avon, graciously served as the Master of Ceremonies for the entire evening, making the first toast to all of the independent contractors who truly represent the essence of the industry, which is the opportunity to engage in an entrepreneurial-based channel of distribution. Brian then presented the Bravo Momentum Award to It Works! Global and the Bravo Growth Award to Nerium. Both of these companies delivered outstanding, record-breaking performance that served and inspired both consumers and independent business owners during 2012.

Alessando Carlucci, CEO of Natura and Chairman of the World Federation of Direct Selling Associations, received the DSN Bravo Leadership Award and delivered the keynote address. Brazil-based Natura, which sells cosmetics, fragrances and personal-care products, is known for prizing social impact and sustainability as highly as its return to shareholders, even describing the company’s results on them equally in its annual report. Under Carlucci’s leadership, Natura has developed a salesforce of 1.5 million people in Latin America. He brings those same societal and entrepreneurial values into his WFDSA role. Complete coverage of the event and the DSN Global 100 will be published in our June issue.

As we now move through the month of May and look toward this year’s Direct Selling Association Annual Meeting (www.dsa.org), there is much optimism regarding the outlook for direct selling. Recruiting remains strong across the industry from this perspective, and the media attention to job creation should also continue to support increasing interest in direct selling companies. Some of the negative publicity and activities that challenged the industry during the latter part of 2012 may very well have ignited a positive wave of communication supported by the enormous engagement of direct sellers in social media.

Recently, USA Today’s Maria Bartiromo interviewed International Monetary Fund (IMF) Managing Director Christine Lagarde to discuss jobs, growth and the global economy prior to IMF meetings in Washington, D.C. One of Maria’s questions related to the 200 million people around the world who are out of work. Lagarde mentioned in her explanation of solutions the importance of unleashing creative potential and the enterprise spirit that exists pretty much everywhere. As I read this article, it was just another reminder of how important our industry’s story is and what it could mean to so many who still simply do not know what they don’t know. Direct selling companies are of the few who maintain open doors of opportunity to people from all walks of life who are seeking a way to chart their own destiny. Approximately 100 million people (WFDSA data) have already chosen a direct selling opportunity; the companies can certainly serve and support more.

Our cover story this month focuses on that most important period in the life of the new consultant/distributor—the first 90 days! It is referred to by basically every direct selling company as the most critical period in the development process, beginning with how the new person gets engaged. All who say yes to a direct selling opportunity do so because there is a belief that the opportunity can be life-changing. The term “life-changing” may have many different definitions; however, what is actually experienced in the first 90 days usually determines the outcome of the time, money and effort invested. We appreciate very much the open sharing and contributions from the companies who participated in the content of this article.

Good news! We are embracing digital! Beginning in the month of June, our monthly magazine will expand to digital format, enabling access through the Apple Newsstand and Google Play Store. It will be available for iPads and iPhones, as well as Android tablets and smart phones. Expanding to a digital format enlarges the resources of Direct Selling News. Our global friends have found it very difficult to be subscribers due to the postage requirements and the long and often damaging delays in shipment.

Recent data reveals that the use of tablets is expected to exceed 190 million by the end of this year and reach 350 million by the end of 2017. Our new app will allow for links and other information to be shared easily. We are excited about this expansion and the increased exposure it will provide to those who advertise with DSN.

Until next month… enjoy the issue!

John Fleming
Publisher and Editor in Chief

May 2013

May 1, 2013 by DSN Staff Leave a Comment

MonaVie

Phil Welch

Andrea Barnes

MonaVie announced the promotion of Phil Welch to President of North and Southeast Asia.

In this new and expanded role, Welch will oversee markets in Japan, Korea, Malaysia, Singapore and Thailand. He will be responsible for creating and driving business and marketing strategies to help distributors in each market.

Welch has more than 20 years of executive management and leadership experience. Since joining MonaVie in 2010, he has supported distributors and helped build MonaVie Japan into one of the top markets in the company. In the last three years, Welch has served as General Manager and President of Japan, and most recently as President of North Asia.

Also the MORE Project board of trustees announced the appointment of Andrea Barnes as Executive Director for MORE Project, a charitable, 501(c)(3) organization established in 2005 by MonaVie to help people living in poverty.

Barnes brings extensive nonprofit experience to MORE Project, as she has served in a variety of leadership capacities for universities, schools, humanitarian institutions and fine/performing arts organizations. She has been involved with MORE Project for nearly five years as Director of Giving Programs. Prior to joining MORE Project, Barnes owned a consulting company, AB Funding Solutions, which specialized in not-for-profit management, fundraising, events and data management.

MonaVie is a product innovator in the health and wellness category. MonaVie’s nutritional beverages feature a blend of açai berry and other nutrient-dense fruits and are available through a global network of more than 1 million independent distributors in 21 countries.

ViSalus

Ros Simmons

ViSalus, the company known for the Body by Vi™ 90-Day Challenge, announced the appointment of Ros Simmons as Managing Director of Vi (UK). Simmons will have responsibility for all aspects of the UK market, including field sales support, training, events and operations. She will report directly to Paul Noack, President of ViSalus.

Prior to ViSalus, Simmons was Vice President of Global Brands at The Licensing Company, where she was responsible for creating strategies and implementing worldwide brand extension and licensing programs for Coca-Cola, Hearst Corp and Reckitt Benckiser. Simmons was also previously one of the four founders and CEO of another direct seller.

Founded in 2005 with headquarters in Los Angeles and Troy, Mich., ViSalus is the company behind the Body by Vi™ Challenge, a 90-day weight-loss and fitness transformation platform, that includes a business opportunity as well as premium products and a support community. ViSalus is majority-owned by Blyth Inc.

Nature’s Sunshine Products Inc.

Gregory L. Probert

Nature’s Sunshine Products Inc. announced that Gregory L. Probert, the Executive Chairman of the Board of Directors of the company, was appointed to serve as Interim CEO.

Probert has served as the Executive Chairman of the Board since January 2013. He was appointed Executive Vice Chairman in June 2011, and before that served as an independent consultant to the company since 2010. Previously he was Chairman of the Board and CEO of Penta Water Company.

Nature’s Sunshine Products markets and distributes nutritional and personal-care products through a global direct salesforce of over 600,000 independent distributors in more than 40 countries.

Mannatech Inc.

Roy Truett

Mannatech Inc., an innovator and provider of naturally sourced supplements based on Real Food Technology® solutions, announced the hiring of Roy Truett as President of International and Chief Operating Officer, effective immediately.

Truett, a veteran of the industry, will lead Mannatech’s operational efforts at the corporate level globally and drive growth strategies internationally. He will oversee the company’s efforts in international operations, supply chain and IT, and will also be involved in all strategic decisions for the company as part of the Senior Executive Office.

Truett brings experience working at the executive level in both the direct sales and nutritional industries. Most notably, he spent 12 years serving at another direct seller, beginning as Director of IT, and then quickly took on additional responsibilities for the company, including Chief Information Officer and Chief Operating Officer.

Mannatech Inc. develops high-quality health, weight and fitness, and skincare products that are based on the solid foundation of nutritional science and development standards. Mannatech’s proprietary products are available through independent sales associates around the globe in 22 markets.

Nerium International

Al Richey

Nerium International announced the appointment of Al Richey as Vice President of U.S. Operations. Richey is a certified Operations/Supply Chain professional with over 20 years in positions of increasing responsibility in both domestic and international roles.

With a diverse professional background, including a wealth of experience with a prominent direct sales company, Richey will use these skills to hone all areas of operations at Nerium.

Nerium International is a skincare company based in Addison, Texas. Their product, NeriumAD, helps defy the signs of aging and is distributed through independent representatives called Brand Partners.

Univera Inc.

Rick Nelson

Univera Inc. announced Rick Nelson as Vice President of International for the health and nutritional products company headquartered in Seattle.

Nelson has worked in the direct selling industry for more than 20 years, holding executive positions in various companies. He has extensive experience opening new international markets and collaborating with Associates to grow businesses.

Univera Inc. is a direct seller in the natural products industry, delivering high-quality health products to hundreds of thousands of customers across North America. A part of the ECONET family of companies, Univera is fully integrated from farm to family.

3000BC

Anne Butler

Chet Seely

3000BC has announced that Anne Butler, CEO of Butler Advisors and a direct selling executive, as well as Chet Seely, another direct selling veteran, have joined the board of directors.

Butler is a senior executive with more than 20 years of domestic and international management experience. During this time, she created substantial growth and led international expansions in both public and privately held companies. Most recently, she served Blyth Inc. as Worldwide President of PartyLite and now serves Blyth as Senior Advisor. Butler also serves on the board of the Direct Selling Education Foundation.

Since 1995, Seely has led, launched, built and grown direct selling ventures. Most recently, he was Managing Director and Co-Founder for a direct seller that offers residential electricity service, which was eventually sold to one of the largest private electric manufacturers in the United States. Before that, Seely led sales and marketing forces of other direct sellers and worked in Asia, where he spent much of his childhood.

3000BC markets beauty products, with particular focus on anti-aging skincare, through a national network of independent Beauty Coaches. The 3000BC product line combines pure botanicals and powerful FDA-approved clinical ingredients.

Vivint

Todd Santiago

Vivint™, the largest home automation services company in North America, announced the appointment of Todd Santiago to Chief Sales Officer. Santiago will lead all sales efforts at Vivint, including the direct-to-home division, national inside sales, and channel partners.

Before joining Vivint, Santiago was President of 2GIG Technologies. While at 2GIG, he built the company’s security and home automation platform. He also developed a network of more than 2,000 dealers throughout North America, including Vivint. Santiago’s leadership was instrumental in the company’s acquisitions by Blackstone and, most recently, Nortek for $135 million.

Vivint’s technology-based platform integrates a wide range of wireless features and components that deliver simple, affordable home security, energy management, home automation and solar solutions. Vivint has more than 13 years of experience and supports over 700,000 customers throughout the United States and Canada.

SeneGence International

Kirsten Aguilar

SeneGence International®, a direct sales company specializing in long-lasting cosmetics and anti-aging skincare, announces the promotion of former Marketing Manager Kirsten Aguilar to Vice President of Marketing. In her new position, Aguilar will lead the company’s market and brand strategies.

With over a decade of experience in direct sales and the beauty industry, Aguilar will manage the sales and international growth goals of the company while overseeing a marketing, graphic design and public relations team responsible for print, packaging, web and media content.

Founded in 1999, SeneGence is a privately owned company that sells skincare, anti-aging, cosmetics and body-care products, including its patented long-lasting lip color, LipSense®. SeneGence is currently doing business in 11 countries.

Please submit news of executive promotions and hires at your company to be included in the Executive Announcements section of Direct Selling News. Email pr@directsellingnews.com

Financial News, May 2013

May 1, 2013 by DSN Staff Leave a Comment

Avon Products Inc.

Avon Products Inc. (AVP—NYSE) announced that the company has completed refinancing activities, including the completion of a public offering of $1.5 billion in notes. The company also entered into a $1 billion four-year unsecured Revolving Credit Facility Agreement, which replaces the previous $1 billion Revolving Credit Facility Agreement.

In summary, the company has taken or anticipates taking a number of actions to improve the health of its balance sheet. Avon also issued $1.5 billion of unsecured notes generating net proceeds of $1.48 billion (after transaction costs) with maturities of 3, 7, 10 and 30 years.

The company is also repaying $1.9 billion of debt, utilizing $400 million in cash to reduce leverage, and has negotiated covenants to now provide necessary flexibility to support the turnaround.

In other news, Avon released further details of the company’s previously announced $400 million Cost Saving Initiative by 2016.

The latest actions include a global headcount reduction of more than 400 associates across all regions and functions, and the restructuring or closure of certain smaller, underperforming markets, primarily in Europe, Middle East & Africa, including the exit of the Republic of Ireland market. These actions, like those previously announced, are aimed at boosting efficiencies and concentrating resources on high priority markets and activities. The company expects these actions to be largely completed before the end of 2013.

Avon said that total charges related to these actions are expected to be in the range of $35 to $40 million before taxes and that approximately $20 million of that total will be recorded in the first quarter of 2013. The company expects these actions to generate approximately $45 to $50 million in annualized savings, when fully implemented, as part of its $400 million cost savings goal.

Avon, the company for women, is a leading global beauty company, with nearly $11 billion in annual revenue. As one of the world’s largest direct sellers, Avon is sold through more than 6 million active independent Avon Sales Representatives in over 100 countries.

Blyth Inc.

Blyth Inc. (BTH—NYSE), a direct to consumer company and designer and marketer of health and wellness products, candles and accessories for the home, reported earnings for the fourth quarter and full year.

Fourth Quarter 2012 Results

Net sales for the three months ended Dec. 31, 2012 decreased approximately 4 percent to $331.0 million from $345.5 million for the comparable prior year period. Sales growth of ViSalus, as compared to the prior year period, was more than offset by declines at PartyLite and Miles Kimball Company.

Blyth’s operating profit for the fourth quarter was $39.8 million this year versus $34.5 million last year. Net earnings attributable to Blyth Inc. for the fourth quarter were $27.8 million compared to $25.6 million for the prior year. Diluted earnings per share for the fourth quarter were $1.63 this year compared to $1.54 last year.

In December 2012, Blyth increased its ownership in ViSalus from approximately 73 percent to approximately 81 percent at a cost of $60 million. As part of that transaction, Blyth essentially modified its obligation to purchase the remaining 19 percent interest in ViSalus that it did not already own through the issuance by ViSalus of redeemable convertible preferred stock.

This December 2012 transaction necessitated a revaluation of ViSalus. The revaluation resulted in a fair market value of ViSalus which required a non-cash adjustment of $34 million, or $1.99 on a diluted earnings per share basis. As a result, after giving effect to the exchange of redeemable preferred stock in excess of fair value, net earnings attributable to Blyth Inc. common stockholders in the fourth quarter of 2012 is a loss of $6.2 million, or a loss of 36 cents per share.

During the fourth quarter, the company repurchased 411,336 shares, or approximately 2.4 percent of its 17 million shares outstanding. The company has 1.6 million shares remaining in its existing repurchase authorization.

Health & Wellness segment – ViSalus fourth quarter net sales increased 29 percent to $126.6 million versus $98.5 million for the same period last year. Health & Wellness fourth quarter segment operating profit was $8.7 million this year versus $2.7 million last year. Excluding EIP charges this year and last year, and allocated corporate expenses of $2.4 million this year and $1.8 million last year, fourth quarter operating profit for ViSalus was $13.3 million this year versus $16.1 million in the fourth quarter of 2011.

Candles & Home Decor – PartyLite sales were $160.1 million in the fourth quarter, versus $195.5 million for the same period last year, a decline of 18 percent. PartyLite’s European sales during the quarter declined 11 percent in local currency, or 14 percent in U.S. dollars. PartyLite’s U.S. sales declined 34 percent versus the prior year period. At PartyLite Canada, sales declined 24 percent in local currency and 21 percent in U.S. dollars during the quarter.

Fourth quarter operating profit for the Candles & Home Decor segment was $29.9 million versus $28.8 million in last year’s fourth quarter. Excluding restructuring charges this year and last year, and allocated corporate expenses of $1.6 million this year versus $3.6 million last year, PartyLite’s operating profit was $32.5 million this year versus $35.4 million last year.

2012 Annual Results

Blyth’s net sales for the year ended Dec. 31, 2012 increased 34 percent to $1.2 billion versus $900 million for the prior year. Operating profit for the year was $84.6 million this year versus $32.2 million last year.

Commenting on ViSalus’ contribution to this growth, Robert B. Goergen, Chairman of the Board and CEO of Blyth, noted that ViSalus’ full year sales were $624 million versus $230 million in 2011, a 171 percent sales growth.

Net earnings attributable to Blyth Inc. for the full year were $44.0 million compared to $13.8 million for the prior year. Diluted earnings per share attributable to Blyth Inc. were $2.55 this year compared to 83 cents last year.

After giving effect to the non-cash adjustment of $1.97, resulting from the exchange of redeemable preferred stock in excess of fair value, the diluted earnings per share attributable to Blyth Inc. common stockholders was 58 cents.

Blyth Inc., headquartered in Greenwich, Conn., is focused on the direct selling and direct marketing channels, primarily utilizing both the network marketing and home party plan methods through PartyLite and ViSalus.

Crius Energy Trust

Crius Energy Trust (KWH-UN.TO—TORONTO) announced its audited financial results for the period from establishment of the Trust to Dec. 31, 2012. The Trust was established on Sept. 7, 2012 and commenced operations on Nov. 13, 2012 with the acquisition of a 26.8 percent ownership interest in Crius Energy, LLC, parent company of direct seller Viridian Energy. All figures in U.S. dollars unless otherwise noted.

The Trust completed its initial public offering on Nov. 13, 2012 for gross proceeds of CAN$100 million through the issuance of 10 million trust units at CAN$10.00 per unit and completed the company interest acquisition for approximately $89.7 million.

The Trust had revenue of $56.3 million for the period from inception to Dec. 31, 2012. Gross margin was $11.9 million or 21.1 percent of revenue for the same period with adjusted EBITDA of $3.5 million or 6.2 percent of revenue. The Trust had a cash balance of $30.3 million and no long-term debt as of Dec. 31, 2012.

The Trust paid its first distribution to unitholders on Jan. 15, 2013 for the initial period from Nov. 13, 2012 to Dec. 31, 2012 in the amount of CAN$0.1326 per unit and paid subsequent monthly distributions of CAN$0.0833 per unit on Feb. 15 and March 15, 2013.

The Trust was established on Sept. 7, 2012 and completed the offering and the acquisition of the company interest on Nov. 13, 2012. Accordingly, the fourth quarter of 2012 reflects operations of the company from the close of the acquisition of the company interest on Nov. 13, 2012 through Dec. 31, 2012.

For the period ending Dec. 31, 2012 revenue was $56.3 million.

Crius Energy Trust has been established to provide investors with a stable and consistent distribution-producing investment through the acquisition of a 26.8 percent ownership interest in Crius Energy LLC, which is one of the largest independent energy retailers operating in the United States, with more than 530,000 residential customer equivalents.

Immunotec Inc.

Immunotec Inc. (IMM—TSX VENTURE), a Canadian-based wellness company, released its first quarter 2013 financial results for the three-month period ended Jan. 31, 2013.

Total revenue reached $12.2 million, an increase of 10.3 percent as compared to the same period in the previous year.

Network sales reached $11.2 million, an increase of 12.4 percent as compared to the same period in the previous year.

Adjusted EBITDA improved to $800,000 or 6.8 percent of total revenues, compared to $300,000 or 2.5 percent of total revenues for the same period in the previous year, a significant improvement.

Net profit was $528,000, a significant improvement over a net profit of $6,000 for the same period in the previous year.

Immunotec is a world-class business opportunity supported by unique, scientifically proven products that improve wellness. Headquartered with manufacturing facilities near Montreal, Canada, the company also has distribution capacities to support its commercial activities in Canada and internationally to the United States, Europe, Mexico and the Caribbean.

LifeVantage Corp.

LifeVantage Corp. (LFVN—NASDAQ), a science-based nutraceutical company with patented dietary supplement Protandim®, the Nrf2 Synergizer®, announced that its board of directors approved a share repurchase program that authorizes the company to utilize up to $5 million to purchase additional shares of its common stock. The company is nearing completion of repurchasing the $5 million under the repurchase program that was previously approved and announced in December 2012.

The newly approved repurchase authorization permits LifeVantage to purchase shares from time to time through a variety of methods, including in the open market, through privately negotiated transactions or other means as determined by the company’s management, in accordance with applicable securities laws.

In addition, the company has begun the process of analyzing the merits of potential methods of reducing the number of outstanding shares. The company is in the process of engaging an investment bank to assist with the analysis. The company will provide additional details about the results of its analysis as appropriate.

LifeVantage is a leader in Nrf2 science and sells anti-aging products to reduce oxidative stress at the cellular level. The company was founded in 2003 and is headquartered in Salt Lake City.

Mannatech Inc.

Mannatech Inc. ( MTEX—NASDAQ), a developer and provider of nutritional supplements and skincare products based on Real Food Technology® solutions, announced financial results for its fourth quarter and year end 2012.

Fourth Quarter 2012 Results

Fourth quarter net sales for 2012 were $42.3 million, a decrease of 11.7 percent compared to $47.9 million in the fourth quarter of 2011. Net sales for United States and Canada declined 14.4 percent to $20.2 million compared to $23.6 million in the fourth quarter of 2011. International net sales of $22.1 million decreased 9.1 percent compared to $24.3 million in the fourth quarter of 2011.

Net income was $300,000, or 10 cents per diluted share, for the fourth quarter of 2012, compared to net loss of ($7.0 million), or ($2.63) per diluted share, for the fourth quarter of 2011.

2012 Annual Results

Annual net sales for 2012 were $173.4 million, down 13.6 percent from $200.7 million for 2011. The company reported a net loss for 2012 of $1.4 million, compared to a net loss of $20.7 million in 2011. The loss per share was 52 cents in 2012, compared to the loss per share of $7.80 in 2011.

Direct Selling News has accumulated this information from public sources, including press releases and SEC filings. The information is presumed accurate and reliable. However, it is not an endorsement of any investment opportunity. Proper and considerable due diligence should be completed before making any investment.

The Wonder Kid of Social Media

May 1, 2013 by DSN Staff Leave a Comment

Click here to order the Direct Selling News issue in which this article appeared.

The definition of a wonder kid is a young person whose excellence in his or her discipline is appropriate to someone older and more experienced. In many ways, Zurvita is the wonder kid of social media. Even though we are a young company, we understand the monumental opportunity social media gives to every consultant in our industry. We have taken a strong stance in perfecting this part of our business, and in a short period of time, we are already reaping the benefits. Every direct sales CEO would love to build a platform that would give each consultant an opportunity to build a “warm market” list of 5,000 prospects—a platform to grow each relationship, so one day each of these prospects, when ready, would want to look at their company to either become a consultant or customer. Social media is that platform.

What website reigns supreme on the social media platform?

The platform is vast and confusing at times. Do you focus on one website or attempt to build a successful strategy on multiple sites, like Twitter, LinkedIn, Pinterest and Instagram? Our favorite website on this social media platform is Facebook. Facebook is the core of our strategy because it has 1.1 billion of the world’s population using its service. In the United States alone, 97 percent of all Internet users have a Facebook account. We believe you go where the most eyeballs are and once stable then build on the other websites. It is also the easiest place to build a long-lasting relationship with others.

What is Facebook, really? Basically, it’s just a cooler version of email. Think about it; email allows you to communicate one on one or with a group of people. You send information back and forth to each other in an attempt to motivate someone to do business with your company. Facebook does the same activity, but it uses different words. In email, if you want to pass a great piece of information onto your friends that was shared by someone else you click the forward button. In Facebook, you would click the share button. If you created a piece of information and want to share it with your friends, you write an email and click send. On Facebook, you click post. These are just two examples, and many more can be seen as you navigate around Facebook.

What are our results in 90 days on Facebook (Dec. 31, 2012 to March 31, 2013)?

We have grown from 6,000 to 121,737 unique people seeing our brand every week.

We have grown from 6–10 new people following our brand per day to 35–50 per day.

People are actually interacting with our brand! We went from a few percent to 33 percent engagement with our followers.

Our consultants are now sending out more samples, as well as signing up more customers and consultants than ever before.

Our customers are engaging at an all-time high with each other and our coaches, which creates higher retention.

As a company, we have grown from $2.1 million to almost $5 million in monthly sales.

What is the “how to” on best practices to achieve similar results?

A Facebook Business Page

First, you need a Facebook Business page. In our case, we have one page to support our customers and another to support our consultants. Listen to what your customers and consultants want to see on the pages; after all, it is their community. We analyzed seven months of data and conducted surveys. The results: On an average day, hundreds of people engage with our brand. They tell us what to post; we write it using “social media friendly” text and instant success. We don’t pretend to know it all. It is about community.

Key Takeaway: Create a page where prospects can get excited!

A Facebook Group

Second, you need to harness the power of Facebook Groups. They give you the opportunity to support your customers and consultants on an array of topics. We have thousands of people engaging on a weekly basis, which increases our customer and consultant retention and gives prospects an opportunity to experience the company before enrolling.

Key Takeaway: Create a group where customers and consultants can feel inspired!

A Facebook Roadmap

Third, you need a Facebook Roadmap for your consultants. They need to understand how to grow their “warm market” list to 5,000, how to interact with them on a daily basis and then tap into additional warm market relationships from the original 5,000. We do this by providing video, email, mobile and webinar training.

Key Takeaway: Create a roadmap that keeps your consultants focused on productive Facebook activities!

A Facebook Mobile and Technical Tool Strategy

Fourth, you need to supply mobile and technical tools so each consultant doesn’t have to become a Facebook professional in order to succeed. We built cutting-edge pieces of technology, so each consultant can focus on the most important piece—building the relationship. Your company is unique, so think about the lingo and visuals the leaders supply to motivate their personal prospects to enroll as a customer or consultant. Strategically, lay this out and develop it into an automated tool so all consultants have access to it.

Key Takeaway: Create automation, so your consultants don’t have to become Facebook professionals!

Facebook Ads and Facebook Insights

Fifth, don’t be afraid to use Facebook Ads and Facebook Insights. The ads allow you to further your brand’s reach to a select demographic. You should start off with a low daily budget of $5 and do A/B and Multi-Variant testing to ensure you will be maximizing your marketing dollars. As you gain the results you seek, you gradually increase your daily budget to $10, $15, and eventually to the amount you feel is an optimal budget for your company.

Once you perfect this exposure piece, you may decide to have your consultants join in on the activity. For example, you may be opening up a new city market. You can pinpoint your campaign to fuel local meetings and your leadership may decide to be part of the campaign. The insights allow you to make critical changes as you build out your strategy. Insights will also improve your customer service and decisions on introducing new products, enhancements in compensation and other factors in your company’s life cycle. Additionally, your insights will show you what countries, regions, states and cities are more interested in your opportunity. They also show you if males or females and age groups have importance to your success. The nice part of insights is they give you a wealth of information that is not easily accessible by any other means online.

Key Takeaway: Ads and insights will maximize your growth!

Facebook Integration at Every Level of your Organization

Sixth, integrate Facebook into every facet of your company. Facebook has become part of the fabric of Zurvita, not just a tool. Consider integrating your customer service software into Facebook Business pages, set up inspirational Facebook groups with your leadership and use it as an HR screening process. The possibilities are endless!

Key Takeaway: Facebook will grow every department within your company!

Will you have success on Facebook?

By successfully implementing the points in this article, you are well on your way to developing your own Facebook success story. Two final points to consider: Hire a social media professional who understands social media ROI in direct sales to spearhead your efforts and the careful interweaving of your company values. We believe in a company with strong but humble leadership and an environment where people can win at every level. We also implement these values at every level of our social media plan.

We wish you success and we’ll see you on Facebook!

Jim Lupkin is the Director of Social Media at Zurvita Inc. As a consultant and at a corporate level responsible for producing significant social media ROI, he has a passion for social media and direct sales.

Major Change, Innovation and Determination Drive the UK

May 1, 2013 by DSN Staff Leave a Comment

Click here to order the Direct Selling News issue in which this article appeared.

Just over two years ago the Direct Selling Association of the United Kingdom underwent a major overhaul to re-energise the industry and establish stronger relationships with its member companies. After becoming the Director General, I brought together a small team with extensive direct selling experience. We relocated from London to Northampton, in the heart of the country and central to more members. A new logo was created to reflect a modern and vibrant image based on a people business.

Five key objectives were then agreed with the DSA Council and these objectives remain the driving force of the UK DSA. They are:

Ensure that decisions and actions always add value to our members

Focus on improving the image of direct selling in the UK

Work closely with the media, government bodies and opinion formers

Remain financially secure by controlling tight budgets

Develop innovative ideas to support members

These objectives have led to many achievements, which include the development of a completely new and interactive website that portrays a dynamic image and is accessible to all. The website has become a major portal for information sharing and is refreshed regularly, providing us with a major communication channel. The result has been incredible, with the number of visits on the old website of 100 per month growing to 10,000 per month and increasing daily. A logical progression has been to embrace social media as a valuable additional communication through Facebook, Twitter and LinkedIn.

The next action was to engage an experienced PR company to work exclusively with key media contacts in the national media arena and to develop a library of direct seller case studies in conjunction with member companies. A virtual PR group, made up from contacts within member companies, was established to work closely with the PR team to support industry statements with real life direct seller stories.

The strategy is not simply to say how good direct selling is, but to react to the current trends and news stories such as unemployment, lack of employed work, creating entrepreneurs and talking about the flexible opportunities to earn money in this industry. This approach has resulted in the media presenting the industry in a positive manner. We are building strong relationships with key media, which led to an appearance on primetime BBC TV, national and regional radio coverage and over 250 positive articles appearing in the national press and in trade and women’s magazines.

DSA membership subscriptions have held at the same level and financial security has been maintained, raising funds through the annual conference, training seminars and other innovative ideas such as the introduction of a DSA Rewards Programme available to all member companies and their direct sellers. This programme provides valuable business support with Public Liability Insurance, tax advice and a lapel pin with the DSA logo providing additional security to direct sellers. Alongside this is a rewards system with hundreds of national merchants offering discounts in shops, supermarkets, restaurants, leisure and holidays, and many more—all for the purchase price of £20 (just $30).

Currently, communication between the DSA and the members is at an all-time high. Many companies are thriving despite a deep economic recession, and the overall direct sales appears to be outperforming the retail sector. The lower consumer spend has been balanced by an increase in orders driven by higher recruitment levels.

Significant changes in trends have also taken place, with a 29 per cent increase in the number of men now involved, a 26 per cent increase in people over the age of 50 and more hours being worked generally by the average direct seller. Strong working relationships with government officials are now in place, including a partnership with the ‘All Parliamentary Group on Entrepreneurship.’

We are probably the only industry in the country that delivers the government’s agenda on a daily basis. We provide flexible earning opportunities whilst creating entrepreneurs and developing micro businesses, all vital in driving economic recovery.

We are very proud of what we have achieved in such a short time here in the re-energised DSA. There is still a lot to do but I believe we are on the right track and, more importantly, our member companies believe so, too.

Paul Southworth is Director General of the UK Direct Selling Association.

New Longaberger Owner Eyeing Additional Brands

May 1, 2013 by DSN Staff Leave a Comment

Direct Selling News reported last month that The Longaberger Company had signed an agreement with Dallas-based Computer Vision Systems Laboratories Corp. (CVSL), bringing the 40-year-old company under the umbrella of publicly-held CVSL. The conglomerate has confirmed that it is also in discussions to acquire other undisclosed direct sales companies representing $6 billion in combined revenue.

According to Chairman John Rochon, CVSL’s direct selling strategy focuses on maintaining independent management of each brand, as Longaberger has under its agreement. Each company will preserve its unique identity while benefitting from the partnership of an entire portfolio of brands. For example, CVSL intends to utilize the considerable available space at Longaberger facilities in New Jersey and Ohio as it structures the operations of additional companies.

CEO Tami Longaberger is excited to see what the future holds for The Longaberger Company. “As the world changes, so do businesses,” she said. “Good, strong businesses find allies and partnerships that make them stronger. It’s not just a smart thing but in many ways essential.”

Read the full Columbus Dispatch story here.

Herbalife Exceeds Q1 Earnings Forecast

May 1, 2013 by DSN Staff Leave a Comment

Herbalife has spent much of 2013 defending its business model against hedge fund manager Bill Ackman’s pyramid accusations. In a Dec. 20 presentation, Ackman denounced the nutritional supplements seller and stated a $0 target price for Herbalife stock, simultaneously shorting the company 20 million shares. In spite of Ackman’s continued opposition, Herbalife’s first quarter earnings report surpassed analysts’ predictions and its own forecasts with $1.1 billion in revenue, a 17 percent year-over-year increase.

The report also follows closely upon the resignation of Herbalife auditing firm KPMG following accusations of insider trading by the firm’s senior partners. Herbalife’s earnings equal $1.10 per share, beating the $1.03 to $1.07 per share forecasted by the company and marking the seventeenth consecutive quarter Herbalife has posted earnings reports surpassing analysts’ estimates.

Read the full Los Angeles Times story here.

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There’s a magic window in direct selling—a tricky space between distributor signup and the first glimmers of success. Here, newcomers—green to the concept of owning businesses and working for themselves—vacillate between unbridled excitement and all-out fear.

Face Time and Hash Tags

More the Same Than You Think

“It’s not about making everybody the same. It’s just about figuring out how our people like to play.” —Alexia Vernon, author and Gen-Y expert

Every Newbie Needs the Same Things

Getting Where You Want To Go

“It’s about giving people very simple, very social, very actionable steps to get the result they are looking for.” —Blake Mallen, Co-Founder and Chief Marketing Officer, ViSalus

Clear Objectives, Simple Steps

“We evaluate what a new consultant wants out of the business and then figure out what’s between her and that first party.” —Alexa W., Independent National Executive Director, Thirty-One Gifts

“People need to have the tools to hit the ground running. We know that no matter who you are, money talks. It’s the one approach that truly crosses generations.” —Sheila Marcello, Vice President of Marketing, ACN

Leveraging Technology

There are infinite ways for companies to successfully inspire, motivate and teach newcomers using technology, but an equal number waste time, money, and social media credibility and clout.

Company Profile

Gary Raser has his eye on “the 96 percent,” the huge majority of people who have never been in the direct selling industry. And he’s reaching them.

Slow Economy Changes the Game

LIMU made a sweeping series of changes that overhauled its basic marketing methods, helped new distributors get profitable quickly, introduced new products and revved up recognition.

Changing Demographic

The combination of LIMU Experience parties, new products and social media has shifted the Promoter demographic significantly younger.

From Success to Significance

“The significance of the $100 million milestone is the hundreds of thousands of lives we have touched, the success people have had and the benefits people have had from the products.” —Gary Raser, Founder, President and CEO

A Significant Hand Up

Company Profile:

“I was surprised by the growth that occurred even while we were learning about each other—how quickly we succeeded and how much positive came out of the marriage of these companies.” —Bill Andreoli, Founder of FDI and President of Youngevity

One Big Happy Family

“We want to be one of the top 10 direct selling companies. We know in order to do that we need to expand internationally.” —Steve Wallach, CEO and Chairman

Rebranding the Message

Social Media Makeover

“[Social media] has re-engaged people who for one reason or another took a different path. Social media has brought them back around to us.” —Michelle Wallach, COO

“Content is the king of engagement. Every day we try to outdo ourselves. How can we get even better? You can’t lose if you do that.” —Henry Weinaker, Director of Social Media

Spotlight on Products

Going Public

Be the Change

“Being public provides a great deal of comfort to our customers and distributors that we’re going to be here for the long-term.” —Dave Briskie, CFO

Company Profile:

The direct selling industry is home to some of the most generous people on the planet. From distributors all the way up to the founders of the industry’s largest companies, direct selling attracts people who define their success by what they can do for others.

About the Company

“The Amway One by One® Campaign for Children has become a global movement.We do it because it is the right thing to do.” —Jesse Hertstein, Senior Corporate Citizenship Specialist

About the Campaign

Through its vast network of international distributors, Amway seeks to create local partnerships that improve the way children around the world live, learn, achieve and play.

“It made the most sense for our business and for our people because Amway is a business of helping people reach their potential—and children have the most potential and often need the most help to succeed.” —Jesse Hertstein

The Campaign’s Impact

“The efforts of Amway One by One® have transformed the lives of 10 million children in 10 years.” —Todd Woodward, Vice President of Corporate and Integrated Communications

What Other Companies Can Learn from Amway

“Each child helped and each life impacted is a testament to the incredible giving spirit of Amway distributors and employees.” —Doug DeVos, President

MonaVie

ViSalus

Nature’s Sunshine Products Inc.

Mannatech Inc.

Nerium International

Univera Inc.

3000BC

Vivint

SeneGence International

Avon Products Inc.

Blyth Inc.

Fourth Quarter 2012 Results

2012 Annual Results

Crius Energy Trust

Immunotec Inc.

LifeVantage Corp.

Mannatech Inc.

Fourth Quarter 2012 Results

2012 Annual Results

What website reigns supreme on the social media platform?

What are our results in 90 days on Facebook (Dec. 31, 2012 to March 31, 2013)?

What is the “how to” on best practices to achieve similar results?

A Facebook Business Page

A Facebook Group

A Facebook Roadmap

A Facebook Mobile and Technical Tool Strategy

Facebook Ads and Facebook Insights

Facebook Integration at Every Level of your Organization

Will you have success on Facebook?

“It’s not about making everybody the same. It’s just about figuring out how our people like to play.”
—Alexia Vernon, author and Gen-Y expert

“It’s about giving people very simple, very social, very actionable steps to get the result they are looking for.”
—Blake Mallen, Co-Founder and Chief Marketing Officer, ViSalus

“We evaluate what a new consultant wants out of the business and then figure out what’s between her and that first party.”
—Alexa W., Independent National Executive Director, Thirty-One Gifts

“People need to have the tools to hit the ground running. We know that no matter who you are, money talks. It’s the one approach that truly crosses generations.”
—Sheila Marcello, Vice President of Marketing, ACN

“The significance of the $100 million milestone is the hundreds of thousands of lives we have touched, the success people have had and the benefits people have had from the products.”
—Gary Raser, Founder, President and CEO

“I was surprised by the growth that occurred even while we were learning about each other—how quickly we succeeded and how much positive came out of the marriage of these companies.”
—Bill Andreoli, Founder of FDI and President of Youngevity

“We want to be one of the top 10 direct selling companies. We know in order to do that we need to expand internationally.”
—Steve Wallach, CEO and Chairman

“[Social media] has re-engaged people who for one reason or another took a different path. Social media has brought them back around to us.”
—Michelle Wallach, COO

“Content is the king of engagement. Every day we try to outdo ourselves. How can we get even better? You can’t lose if you do that.”
—Henry Weinaker, Director of Social Media

“Being public provides a great deal of comfort to our customers and distributors that we’re going to be here for the long-term.”
—Dave Briskie, CFO

“The Amway One by One® Campaign for Children has become a global movement.We do it because it is the right thing to do.”
—Jesse Hertstein, Senior Corporate Citizenship Specialist

“It made the most sense for our business and for our people because Amway is a business of helping people reach their potential—and children have the most potential and often need the most help to succeed.”
—Jesse Hertstein

“The efforts of Amway One by One® have transformed the lives of 10 million children in 10 years.”
—Todd Woodward, Vice President of Corporate and Integrated Communications

“Each child helped and each life impacted is a testament to the incredible giving spirit of Amway distributors and employees.”
—Doug DeVos, President